ETHICAL COMPLIANCE REPORT

CIPLA

Sector:

Healthcare

Industry:

Drug Manufacturers - General

Overall Compliance

compliant

PRIMARY BUSINESS FILTER
Pharmaceutical
compliant
DEBT RATIO FILTER
0.8%
View Calculations
LIQUIDITY RATIO FILTER
2.7%
View Calculations
REVENUE RATIO FILTER
0.8%
View Calculations

Debt Ratio

The interest bearing debt should not exceed 31% of the total assets. This is to ensure that the company is not paying a significant portion of its assets as interest.

0.8%

CALCULATION

\textbf{Debt Ratio:} \\[12pt] \dfrac{2470200000.00}{327178200000.00} \times 100 = 0.80\%

FORMULA

\textbf{Debt Ratio:} \\[12pt] \dfrac{\text{Interest Bearing Debt}}{\text{Total Assets}} \times 100 \; \leq \; 30\%

Liquidity Ratio

The total liquid assets should not exceed 90% of the total assets. This is to ensure that trading this stock does not become similar to trading a currency.

2.7%

CALCULATION

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{8749700000.00}{327178200000.00} \times 100 = 2.70\%

FORMULA

\textbf{Liquidity Ratio:} \\[12pt] \dfrac{\text{Total Liquid Assets}}{\text{Total Assets}} \times 100 \; \leq \; 90\%

Revenue Ratio

The sum of revenue from questionable and non-compliant sources should not exceed 3% of the total revenue. This ensures that the company has tolerable reliance on unethical sources of revenue.

0.8%

Non Compliant

Questionable

Compliant

CALCULATION

\textbf{Revenue Ratio:} \\[12pt] \dfrac{2195900000.00}{265106600000.00} \times 100 = 0.80\%

FORMULA

\textbf{Revenue Ratio:} \\[12pt] \dfrac{\text{Unethical Segments}}{\text{Total Revenue}} \times 100 \; \leq \; 3\%

Segment	Compliance	Value
Other non-operating income	compliant	₹526.98
Interest Income	non-compliant	₹219.59
Revenue from sale of products	compliant	₹25,446.63
Technical know-how and licensing fees	compliant	₹9.03
Other operating revenue	compliant	₹308.43